Do We Have A Good Deal For Our First Seller Finance?

Question

Good afternoon BP family,

I have an owner finance deal that I am pursuing and would like the best course of action. Here is the deal:

Property has an ARV of $250,000

Purchase Price is $190,000

Rehab: $5,000-8,000 (for a lease option tenant)

Seller needs $30,000 at closing

Financing: 15 years at 0 %

Rental amount: $1,800

My payment (including T&I): $1,100

Suggests Please!

Ed Walker · Answer

Hey Chris, I didn't know that was a product. I most definitely will keep that in mind. Thanks

Collin Wallace · Answer

Sounds like the numbers work well. How’d you go about finding this deal and making it happen?

Ed Walker · Answer

Thanks Joel. I was feeling it was but just wanted a little guidance on the presentation of the numbers to the seller.

Doug P. · Answer

@Ed Walker Looks good to me Ed! Under market value, 0% interest owner-carry, and cash flow positive. $30k down is more than I would prefer but you should be able to get at least half of that back from the tenant/buyer so your COC is going to be pretty solid.

@Chris Webb Why pay 4% when you can pay 0%?

Joel Case · Answer

If your numbers check out that seems like a great deal to me considering interest rates are around 7% on 30 years mortgages right now.

Chris Webb · Answer

Have you considered a 50-40-10 with Velocity Mortgage? 50% 1st, 40% 2nd, and 10% down? I just got a blended rate in the 4's.

Do We Have A Good Deal For Our First Seller Finance?

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